If you have been looking for loans on the high street but you have a bad credit rating you might be wondering if it is possible to find loans with bad credit and no guarantor in the UK. Well, with high street lenders finding a loan if you have a poor credit rating is like looking for a needle in a haystack. You will be very lucky to find one. However, there is some good news. You might have more luck in finding a loan online, more so if you allow us to try to match you with a lender.
Why Look For Loans Online?
There are many reasons why you might want to look for loans online and why they are generally easier to find. They include:
- As a broker we can match you up with a lender from a large panel of lenders in the UK;
- By having access to a panel of lenders there is more chance of one being able to offer you a loan;
- We work alongside lenders who will take verifiable income into account not just credit credits therefore boosting your chances;
- Lenders we work alongside offer some of the most attractive rates of interest, even for people with poor credit ratings;
- The lenders on our panel offer numerous loan options, payday loans, short-term loans and personal loans;
- It takes just minutes to make an online application;
- You get an instant decision;
- You can take your time looking over the loan to ensure it is right for you;
- If your loan is approved you could even get money paid into your account the very same day, even within hours.
Choices of Loans with Bad Credit and No Guarantor in the UK
As we mentioned above there are many types of loan to consider that do not require you to have a guarantor. However, some types are easier to find approval for if you have a bad credit rating than others might be.
Two loans in particular that do not need a guarantor or something secured against the loan are the payday and short-term loans.
Neither of these loans offers large sums of money and neither gives you more than 12 months to pay back the loan. The good side is that you are not committed to repaying the loan over many years.
So what is involved with these loans?
Payday Loans – 1 to 3 Months – £100 to £500
One of the easiest types of loans to find approval for with a poor credit rating is a payday loan. This is because the loan only offers a small amount of money, generally £100 to £500.
While it might seem like a small fortune to you if you need to get hold of money fast until your next payday, to lenders it is only a small sum of money. This is why your credit rating is not such a big deal to the lender, although they will make a check of it.
What is more interesting to the lender is a verifiable income. Providing you have a regular income coming in and you have enough money left over to repay the loan, the lender will consider your application.
Payday loans are usually taken out over one to three months. Originally, payday loans were repaid in full on your next payday; today lenders allow borrowers to spread the cost of the repayments over three paydays. This can make the loan more affordable as the interest is calculated over the term of the loan. The amount is then split over the repayments equally. To keep the total cost of the loan down, take the loan over the shortest term possible.
Short-term Loans – Up to 12 Months – Up to £1,000
Another popular type of loan that people with poor credit ratings may get approval for is a short-term loan.
When talking about short-term, lenders usually class anything up to 12 months as being short.
Again, taking a loan out over a longer period can help to keep the monthly repayments down. However, the longer the term of the loan, the more interest accumulates on it.
If you are considering a short-term loan you might want to ensure you could pay the loan off earlier than anticipated if you were to become financial able to do so. Some loans have early repayment fees attached and this would mean that while you could pay up the loan, you would be subject to an early repayment fee. This might do away with any savings you might make on the interest.
The above are two of the main types of loans with bad credit and no guarantor in the UK that you might want to apply for with a poor credit rating. A personal loan may allow you to borrow up to £5,000 if you find yourself needing a larger cash sum. However, whether you can get approval for it is going to depend on your credit rating. The personal loan is generally more difficult to be approved for, and you can expect the APR on personal loans to be high for people with a poor credit rating.
As we work alongside a huge panel of lenders in the UK who do consider verifiable income along with your credit rating, we might be your best choice for applying for a personal loan.
Are You Eligible For A UK Loan?
Before rushing into applying for a loan, you need to make sure that you are eligible. For instance, you have to be 18 at least, live in the UK, and have a regular income, a bank account and debit card.
If you can say yes to the above you can apply for loans with bad credit and no guarantor in the UK with our help. We can try to match you up with a lender from our panel and you get an instant decision.